The economic principle that states that individuals or nations can gain by specializing in the production of goods that they produce cheaply and exchanging for other desired goods that they could only produce at a higher cost is
a. the law of absolute advantage.
b. the law of comparative advantage.
c. the law of production possibilities.
d. the exchange maximum principle.
B
Economics
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Inflation targeting has typically been accompanied by lower inflation
Indicate whether the statement is true or false
Economics
When carmakers began to cut costs of producing cars by designing the chassis, engines, and transmissions so that different models could be produced on the same assembly line, production costs fell $240 per car. This change caused car makers' short-run average cost curves to:
A. remain unchanged, though there was a movement along the short-run average cost curve. B. shift down. C. remain unchanged; only the long-run average cost curve was affected. D. shift up.
Economics